Scrap and billet prices remain at a peak level globally despite the fact iron ore stabilised at some $15/t below this year’s record registered in February.

One reason for such high price levels for scrap and billet is said to be the issue relating to prices and availability of graphite electrodes to be used in EAF-based steelmaking.

A purchasing manager at a major global steelmaker commented that due to the issues with electrodes, many longs’ producers have begun to stock billets at their mills to prepare for the coming months. He noted that some steelmakers buying electrodes in the spot market might be forced to reduce output going into 2018 as the tightness of availability in this market will reach its peak in Q1 2018. “We have started a contingency plan to stock billets at our mills and I believe many other global players have done so,” said the source.